Cathie Wood Scoops Up Bargain-Priced Shares of Coinbase and Circle

Cathie Wood of ARK Invest is known for her bullish predictions on cryptocurrencies. She expects Bitcoin to surge to $1.25 million in five years and Ether to reach $160,000-$180,000 within six years. Wood is putting her money where her mouth is, buying up shares of Coinbase and Circle through Ark's flagship ETFs.

Coinbase is one of the largest cryptocurrency exchanges worldwide, generating revenue from trading fees tied to the crypto market. The company's stock declined 40% over the past year due to rising interest rates, delayed legislation, and other macroeconomic factors. However, analysts expect its revenue and adjusted EBITDA to grow at CAGRs of 19% and 63%, respectively, from 2026 to 2028.

Circle mints USD Coin, the leading stablecoin in the U.S. and second largest globally after Tether USD. Circle's revenue comes mainly from reserve income earned on cash and Treasuries held in a 1:1 ratio to back its own stablecoins. The company's stock declined over 20% in the past year despite strengthening partnerships with Visa and Mastercard.

Cathie Wood holds approximately 2.6 million shares of Coinbase across Ark's ETFs, worth around $486 million or 4% of combined holdings. She also owns roughly 4.5 million Circle shares across the same ETFs, valued at about $446 million and accounting for nearly 4% of total holdings.

Analysts expect Circle's revenue and adjusted EBITDA to grow at CAGRs of 19% and 25%, respectively, from 2025 to 2028. With an enterprise value of $43.5 billion, Coinbase still trades at a relatively low price of 17 times next year's adjusted EBITDA.